Search Results for "basic economy".
In the U.S. it used to be common for airlines to roll back unpopular changes after a customer outcry. Airlines were afraid of losing business.
It’s especially gratifying to see an airline — anywhere in the world — make a change, get pushback, and quickly reverse itself.
Last month Singapore Airlines announced new fare types going into effect January 20.
‘Economy lite’ fares — Singapore’s Basic Economy fare buckets Q, N, V, and K — aren’t just going to mean paid advance seat selection. While this wasn’t announced at the time, Singapore will also be imposing a 1.3% credit card surcharge to Economy Lite reservations originating in Singapore.
The major US legacy airlines have gone to great lengths to destroy their brand this year. And not only because a United Airlines passenger was dragged down the aisle and bloodied back in April because he wanted to travel home on the ticket he purchased when he was already in hit seat.
Delta is offering people who turn down the buy up to regular economy a free checked bag if they buy up, at the same $20 increased price (which is less than they charge for a checked bag). That has to be a mistake.
United Airlines President Scott Kirby says people only care about price and that is why the airline offers such a bad product. Customers say they want a better product but whenever given the choice they choose the cheaper price.
But Basic Economy fares are premised on the exact opposite — that customers will choose product over price.
The Associated Press‘s David Koenig asks American Airlines President Robert Isom about Basic Economy.
There’s a bit of hand waving in his answer, and a claim that is demonstrably false.
Warren Buffett recovered from his once upon a time investment in US Air debt long enough to invest in the airlines again. But his recent investment in major airlines, having lost over a billion dollars last quarter, is not at this point proof that they’re good investments, or validation that their managements are running good businesses.
United discovered with Basic Economy that when you offer an inferior product at the same price, customers will choose your competitors. They lost about $100 million thanks to an own goal that was so thoroughly predictable that I predicted it here.
Is there dissatisfaction within the airline over basic economy?
United is admitting is that they actually lost money because of Basic Economy. United revealed that the “incremental revenue from buy-up” was “more than offset by share loss” to airlines without a Basic Economy offering.
American Airlines told us they planned to roll out Basic Economy fares across their domestic route network in September. I didn’t expect them to do it the day after Labor Day. Of course I suppose it shouldn’t surprise that the thing American Airlines IT delivered on-time was the least customer-friendly move in the known pipeline.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
